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Ford to drop up to 1,000 jobs at German plant as demand for electric cars in Europe lags forecasts

In this July 27, 2021 file photo, a view of a Ford logo on signage at Country Ford in Graham, N.C. (AP Photo/Gerry Broome, File)

Key Points

  • Ford plans to cut up to 1,000 jobs at its electric vehicle plant in Cologne, Germany due to lower than expected demand for electric cars.
  • The job reductions will mainly occur through voluntary departures and buyouts as part of a broader restructuring aiming to reduce the workforce by 4,000 positions in Europe and the UK.
  • Production at the Cologne plant will be adjusted to one shift per day starting in January as the demand for electric vehicles in Europe is significantly below industry forecasts.
  • Despite the overall growth of electric vehicles in Europe, which reached 15.6% market share, the pace has been slower than expected, partly due to the withdrawal of incentives in Germany.
  • MarketBeat previews top five stocks to own in October.

FRANKFURT, Germany (AP) — Ford Motor Co. said Tuesday it would cut up to 1,000 jobs at its electric auto plant in Cologne, Germany due to lower than expected demand for battery-powered cars.

The job reduction would be carried out so far as possible with voluntary departures and buyouts, the company said. It follows a restructuring announced in November 2024 that would reduce Ford's workforce by 4,000 positions in Europe and the UK, with 2,900 of those jobs lost in Germany.

The company said it was continually evaluating production volumes and adjusting them to demand. “In Europe, the demand for electric cars is significantly below industry forecasts,” it said. The plant, which makes an electric version of the Explorer SUV, would move to one shift per day instead of two beginning in January, the company said in a statement.

Electric vehicles captured 15.6% of the European market in the year through July, up from 12.5% in the same period last year. Growth has been slower than expected, in part due to the withdrawal of purchase subsidies in Germany. Ford sold 260,00 vehicles of all types in the first seven months, up 0.7%, and maintained its market share of 3.3%, according to the European Automobile Manufacturers’ Association.

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